Best Bitcoin Brokers For South Africa

Bitcoin as "Safe Haven" in South Africa

The situation in South Africa had been worsening after the ouster of the old president. The new president, Cyril Ramaphosa, had announced immediately that he would take their land from white farmers without compensation, which was probably only be the beginning of the nationalisation of property. Bitcoin was then likely to become a safe haven for South Africans.

Ramaphosa's "land reform" has already prompted international financial agencies to downgrade South Africa's credit rating. In addition, rising unemployment (currently around 25 percent) and racial tensions have created a situation where more and more people are concerned about their assets.

Bitcoin therefore exploded in South Africa in 2017. And interest in the crypto coin continues to grow strongly in the new year - the search volume in Google Trends for Bitcoin in South Africa is currently the largest in the world.

Apparently the South Africans see Bitcoin as a safe refuge from state arbitrariness and possible expropriation by Ramaphosa. Already in Zimbabwe, currently in Venezuela and even in Kenya and Sudan the interest in Bitcoin increased with the political unrest.

2018 – Popularity Of Cryptocurrencies In South Africa On The Rise

Bitcoin & Co. is becoming increasingly popular in many emerging market countries. South Africa, the second largest economy on the African continent, is also experiencing a sustained boom in cryptocurrencies - despite the significant crash of market prices in 2018.

Especially in southern Africa, Bitcoin is becoming more and more popular. The cryptocurrency is also gaining ground in Zimbabwe. With the help of virtual cash, the country, which is politically shaken by monetary policy, is fighting against galloping inflation.

This trend can also be seen in South Africa, where the economy will be struggling hard in 2018. The national currency Rand has marked a six-month low among massive sales in other emerging markets in June this year. As a result, many South African citizens have turned their attention to crypto currencies and especially to Bitcoin. In addition, the country has recently introduced multi-currency ATMs.

Bitcoin remains a popular issue in South Africa. As a result, the state at the southern tip of the continent has the highest Internet traffic for Bitcoin topics.

South African Crypto Industry On The Rise

South African financial services providers in the Bitcoin industry are experiencing record levels. Furthermore, companies like Luno and Paxful enable the population to trade Bitcoin. Luno, is a trading platform for crytocurrencies, offering its clients the exchange of Bitcoins (BTC) against Rand as well as Ether tokens (ETH) against Rand. Many South Africans prefer the diversification of their portfolio which is why platforms such as Coindirect are benefitial, as they offer Litecoin, Ripple and Bitcoin Cash. Coindirect also offers ERC-20 tokens to local market participants.

Local media report that asset management company Sygnia plans to launch a cryptocurrency trading platform in the country by the end of the year. According to the company's CEO, the platform, called SygniaCoin, will offer trading options above simple purchases and sales of virtual cash. The company's plan thus provides a further upgrade of South Africa's cryptocurrency landscape.

Despite the resistance of the banks – cryptocurrencies flourish in South Africa

South Africa's leading banks declared only in May this year that the country's laws require them to be the only institutions with the power to issue and manage money in the country. The central bank then said: "Bitcoin and other cryptocurrencies are not legally recognised. However, the most important law on cryptocurrencies appeared in April 2018, announcing rules for a new tax framework.

After all, one can assume that the environment in South Africa is by no means restrictive. The result: the market is booming.